[UK] Proposed changes to Employment Contracts Act

In the UK, some significant changes proposed to the Employment Contracts Act are expected to progress during autumn 2025, DLA Piper reports.

A dedicated working group has now been established to prepare the changes. It proposes that, in the future, a fixed-term employment agreement may be signed without a specific justification either when an employer and employee enter into their first employment agreement, or if an employee has been continuously employed by the same employer for more than five years. 

The total maximum duration of these agreements would reportedly be 12 months, with the possibility of renewal up to twice within those 12 months.

According to DLA Piper, it is also proposed that the lay-off notice period be reduced from 14 days to seven days. In cases of redundancy, post-employment re-employment obligations would apply only to employers with at least 50 employees.

The government’s proposal is expected in early autumn. Subject to approval, the changes would come into effect on January 1, 2026. These changes will reportedly not affect equivalent provisions contained within collective labour agreements.

Source: DLA Piper

In the UK, some significant changes proposed to the Employment Contracts Act are expected to progress during autumn 2025, DLA Piper reports.

A dedicated working group has now been established to prepare the changes. It proposes that, in the future, a fixed-term employment agreement may be signed without a specific justification either when an employer and employee enter into their first employment agreement, or if an employee has been continuously employed by the same employer for more than five years. 

The total maximum duration of these agreements would reportedly be 12 months, with the possibility of renewal up to twice within those 12 months.

According to DLA Piper, it is also proposed that the lay-off notice period be reduced from 14 days to seven days. In cases of redundancy, post-employment re-employment obligations would apply only to employers with at least 50 employees.

The government’s proposal is expected in early autumn. Subject to approval, the changes would come into effect on January 1, 2026. These changes will reportedly not affect equivalent provisions contained within collective labour agreements.

Source: DLA Piper